MGM Resorts will pay approximately $600 million for Boyd Gaming's 50 percent interest after consideration of Borgata's outstanding debt. The deal will close in the third quarter of this year. After that, MGM will own all of the Borgata Hotel Casino & Spa, and will then sell Borgata to MGM Growth Properties for approximately $1.175 billion. MGM Growth Properties plans to lease Borgata to a subsidiary of MGM Resorts for $100 million per year, which will operate Borgata.

The deal means a lot for MGM for many reasons. MGM decided to back into the Atlantic City market after its slump in Macau. This agreement will allow MGM to entirely own and operate Atlantic City’s best performing casino. Meanwhile, Borgata Hotel Casino & Spa has already processed a license to conduct Internet gaming operations in New Jersey, which provides an opportunity for MGM to expand online gambling. This may also signal MGM`s shift to internet gambling since more states have the potential to legalize online gambling in the future.

James Stewart, CEO of MGM Growth Properties, said "We are excited to add Borgata to the MGP portfolio, further diversifying our geographic presence. With this transaction, we are executing on our core growth strategy in prudently building a portfolio of high-quality assets with market leading competitive positions."

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